ENGINEERS INDIA 2017-18 Annual Report Analysis

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ENGINEERS INDIA 2017-18 Annual Report Analysis
Thu, 20 Dec

ENGINEERS INDIA has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

ENGINEERS INDIA Income Statement Analysis

  • Operating income during the year rose 23.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 36.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.4% in FY18 as against 21.2% in FY17.
  • Depreciation charges increased by 5.7% and finance costs decreased by 81.8% YoY, respectively.
  • Other income declined by 20.8% YoY.
  • Net profit for the year grew by 16.2% YoY.
  • Net profit margins during the year declined from 19.4% in FY17 to 19.2% in FY18.

ENGINEERS INDIA Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 14,797 18,243 23.3%
Other income Rs m 2,224 1,762 -20.8%
Total Revenues Rs m 17,022 20,005 17.5%
Gross profit Rs m 3,143 4,275 36.0%
Depreciation Rs m 227 240 5.7%
Interest Rs m 32 6 -81.8%
Profit before tax Rs m 5,108 5,791 13.4%
Tax Rs m 1,806 1,957 8.4%
Profit after tax Rs m 3,300 3,833 16.2%
Gross profit margin % 21.2 23.4
Effective tax rate % 35.4 33.8
Net profit margin % 19.4 19.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ENGINEERS INDIA Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 21 billion as compared to Rs 15 billion in FY17, thereby witnessing an increase of 40.6%.
  • Current assets rose 1% and stood at Rs 36 billion, while fixed assets fell 3% and stood at Rs 3 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 45 billion as against Rs 44 billion during FY17, thereby witnessing a growth of 3%.

ENGINEERS INDIA Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 28,449 23,412 -17.7
 
Current Liabilities Rs m 15,258 21,454 40.6
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 43,959 45,139 2.7
 
Current assets Rs m 36,014 36,344 0.9
Fixed Assets Rs m 2,828 2,748 -2.8
Total Assets Rs m 43,959 45,139 2.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ENGINEERS INDIA Cash Flow Statement Analysis

  • ENGINEERS INDIA's cash flow from operating activities (CFO) during FY18 stood at Rs 6 billion, an improvement of 153.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -9 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -1 billion from the Rs 1 billion net cash flows seen during FY17.

ENGINEERS INDIA Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 2,364 5,988 153.3%
Cash Flow from Investing Activities Rs m 1,971 1,647 -16.4%
Cash Flow from Financing Activities Rs m -2,839 -8,920 -
Net Cash Flow Rs m 1,496 -1,285 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for ENGINEERS INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.1, an improvement from the EPS of Rs 4.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 123.9, stands at 23.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.7 times, while the price to sales ratio stands at 6.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 20.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 22.0 28.9
TTM Earnings per share Rs 4.9 6.1
Diluted earnings per share Rs 4.9 5.7
Price to Cash Flow x 23.7 20.5
TTM P/E ratio x 23.1 23.1
Price / Book Value ratio x 5.7 4.7
Market Cap Rs m 83,492 83,499
Dividends per share (Unadj.) Rs 3.0 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for ENGINEERS INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.7x during FY18, from 2.4x during FY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 999.4x during FY18, from 161.6x during FY17. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company improved and stood at 16.4% during FY18, from 11.6% during FY18. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 24.8% during FY18, from 18.1% during FY17. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company improved and stood at 8.5% during FY18, from 7.6% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 2.4 1.7
Debtors’ Days Days 98 112
Interest coverage x 161.6 999.4
Debt to equity ratio x 0.0 0.0
Return on assets % 7.6 8.5
Return on equity % 11.6 16.4
Return on capital employed % 18.1 24.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how ENGINEERS INDIA has performed over the last 5 years, please visit here.

ENGINEERS INDIA Share Price Performance

Over the last one year, ENGINEERS INDIA share price has moved up from Rs 191.4 to Rs 123.9, registering a loss of Rs 67.5 or around 35.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,751.6 (down 0.3%). Over the last one year it has moved up from 18,684.3 to 18,751.6, a gain of 67 points (up 0.4%).

Overall, the S&P BSE SENSEX is up 7.4% over the year.

(To know more, check out historical annual results for ENGINEERS INDIA and quarterly results for ENGINEERS INDIA)

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